Managing Consultant of Trust Consult, Charles Kwesi Mensa has urged businesses and individuals drowning in debt to confront the problem with honesty, planning, and discipline, reminding them that being in debt is not the end of the world. On his Money Moves program, Mensa reacted to recent Bank of Ghana statistics showing that 60 percent of all loans in the country have been restructured in the last five years.
To him, this is evidence that debt is a common challenge that cuts across many businesses and households. But instead of panicking or hiding, he said the most important step is to admit the situation. In his words, “pulling yourself out is an admission that there’s a crisis.”
He explained that once the crisis is acknowledged, the next step is to write down every debt, no matter how small or who the creditor is. Whether it is a bank, a microfinance institution, a supplier, or even a relative, he said it must all be listed with the amounts and repayment schedules. “Don’t only remember the persons or companies that are calling you and giving pressure. Debt is debt and therefore put number down,” he advised.
Mensa stressed that the ability to repay hinges on understanding one’s true financial position. Gross figures, he said, often give a false picture, so debtors must focus on net earnings after costs. He illustrated with a simple example: “If on average you are selling goods or services and you make maybe sales of 80,000 and the cost of that particular sales is maybe 60, technically what will be left with you to service a debt is 20.”
He warned that in many cases, what remains is even less than the debt due, which means businesses must either find ways to boost income quickly or consider selling unused assets to raise cash. Even with limited resources, he insisted that repayments can be managed if debts are grouped and spread realistically. Instead of using one creditor’s money to pay another just because of pressure, he encouraged arranging payments in cycles, one group in January, another in February, and back to the first group in March. This approach, he argued, prevents the trap of shifting problems rather than solving them. Crucially, he urged debtors to approach creditors with honesty and respect, not avoidance.
Before any negotiation, he said, it helps to acknowledge the support creditors have given in the past and then explain why the old terms can no longer work. As he put it, “I was committed in the past to pay you in two weeks’ time but I don’t have it now. I’ve done some arrangements on spread so I can pay you in six weeks’ time.” For him, such transparency builds trust and gives debtors breathing space. But he cautioned that words alone are not enough, actions must follow. According to Mensa, paying even the first two or three installments under new terms can change everything.
“By the time you pay the first month, the second and the third one, you can’t even go back because now you’ve maintained your credibility,” he said.
He also reminded listeners that during repayment, perception matters as much as performance. Creditors, he said, are quick to judge when they see a debtor living lavishly or celebrating openly. “Once you are owing the person and they see you at the wedding jamming and all, look at this guy, he’s owing me, he hasn’t paid me but yet he’s jamming. That small thing alone, tomorrow morning you get a call,” he warned.
In closing, Mensa advised debtors not to take on new liabilities in the middle of restructuring, stressing the need for patience and discipline. He pointed out that even large corporations go through debt renegotiations, so the process should not be seen as shameful. What matters, he concluded, is consistency and credibility. “Every supplier or every service provider will appreciate that you are making an effort,” he said.
